Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that deserve a spot on your list.

Duolingo (DUOL)

Return Since IPO: +123%

Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.

Why Is DUOL a Good Business?

1. Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 210% over the last three years outstripped its revenue performance
3. DUOL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

At $309.80 per share, Duolingo trades at 51.4x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Medpace (MEDP)

Five-Year Return: +345%

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Does MEDP Stand Out?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 20.6% over the past two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 36.6% exceeded its revenue gains over the last five years
3. Returns on capital are growing as management capitalizes on its market opportunities

Medpace’s stock price of $304.69 implies a valuation ratio of 24.8x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

EXL (EXLS)

Five-Year Return: +389%

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

Why Are We Backing EXLS?

1. Market share has increased this cycle as its 14.1% annual revenue growth over the last two years was exceptional
2. Forecasted revenue growth of 11.9% for the next 12 months indicates its momentum over the last two years is sustainable
3. Share buybacks catapulted its annual earnings per share growth to 21.8%, which outperformed its revenue gains over the last five years

EXL is trading at $47.20 per share, or 25.2x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.